Description
BSE places securities under ST-ASM Stage I (50% margin) and Stage II (100% margin) effective May 06, 2026, impacting open and new positions in flagged scrips.
Summary
BSE has notified the applicability of Short Term Additional Surveillance Measure (ST-ASM) for certain securities that have satisfied the criteria for inclusion under ST-ASM Stage I and Stage II. Enhanced margin requirements will be effective from May 06, 2026, applicable to both existing open positions (as of May 05, 2026) and new positions created from May 06, 2026. The specific securities are listed in Annexure I attached to the notice.
Key Points
- Securities in Annexure I qualify for ST-ASM Stage I with a minimum 50% margin requirement (capped at 100%)
- Securities in Annexure I also qualify for ST-ASM Stage II with a minimum 100% margin requirement
- Margin requirements apply to all open positions as on May 05, 2026 and new positions from May 06, 2026
- ASM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting under ASM is purely a market surveillance action and should not be construed as adverse action against the company
- Price band of scrips exiting the framework will be reinstated to pre-ASM levels, unless under another surveillance measure
Regulatory Changes
This notice is issued in continuation of prior ASM framework revisions:
- Notice 20240920-71 dated September 20, 2024
- Notice 20181027-1 dated October 27, 2018
- Notice 20190719-33 dated July 19, 2019
- Notice 20201204-56 dated December 04, 2020
- Notice 20230925-49 dated September 25, 2023
- Notice 20240920-63 dated September 20, 2024
The current notice applies the revised ASM framework criteria to newly shortlisted securities.
Compliance Requirements
- Members/Brokers: Must apply enhanced margin rates on impacted securities from May 06, 2026
- ST-ASM Stage I: Collect margin of 50% or existing applicable margin, whichever is higher (maximum capped at 100%)
- ST-ASM Stage II: Collect margin of 100% or existing applicable margin, whichever is higher (maximum capped at 100%)
- Margin requirements apply to open positions held as of May 05, 2026 and all new positions from May 06, 2026
- Members may seek clarifications by writing to bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| May 04, 2026 | Notice issued; securities shortlisted under ST-ASM Stage I & II |
| May 05, 2026 | Reference date for existing open positions subject to new margins |
| May 06, 2026 | Enhanced margin requirements become effective for open and new positions |
Impact Assessment
The placement of securities under ST-ASM with mandatory margin hikes carries significant market impact:
- Liquidity Risk: Higher margin requirements (50%–100%) constrain leveraged trading, reducing liquidity in affected scrips
- Position Unwinding Pressure: Existing position holders as of May 05, 2026 must meet increased margin calls by May 06, 2026, which may trigger forced liquidations
- Investor Sentiment: While BSE clarifies the action is not adverse, ASM inclusion typically signals elevated volatility or unusual price/volume behavior under surveillance
- Price Band Restoration: Scrips removed from the framework will have their prior price bands reinstated, provided they are not subject to any other surveillance measure
- Affected Segments: Equity segment only; specific securities listed in Annexure I (not reproduced in the circular text)
Impact Justification
Mandatory margin hikes of up to 100% on affected securities effective May 06, 2026 significantly impact trading costs and liquidity for securities placed under ST-ASM Stage I and II.